Level Of Market Concentration Research Articles

Concentrated bank market and SMEs’ collateral issues: a study of the firms of developing Asian countries

Collateral is a significant challenge for small and medium enterprises (SMEs) in acquiring formal credit. Bank market concentration can cause to increase collateral demand through enhancing bank market power. This study explores the relationship between bank market concentration and the collateral challenges faced by SMEs in accessing bank credit by employing a probit regression model. The analysis utilizes a sample of over 25,000 firms from 19 developing Asian nations. The datasets combine firm-level data sourced from the Business Environment and Enterprise Performance Survey (BEEPS) with country-level financial data obtained from the Global Financial Development Data (GFDD) which are provided by the World Bank. The results reveal a significant positive correlation between bank market concentration and the collateral challenges encountered by SMEs in developing Asian countries. In markets characterized by high levels of banking concentration, financial institutions tend to exhibit risk-averse behavior, manifesting in an increased propensity to demand collateral for both SME and large enterprise loans. Consequently, this heightened bank concentration exerts additional pressure on SMEs in acquiring bank credit. To foster an environment conducive to SME financing, countries with high levels of banking concentration should enact regulatory measures aimed at managing and constraining market concentration levels.

Research of the dynamics of wholesale segment concentration level in the regional pharmaceutical market

Introduction: The study of the competitive environment in the pharmaceutical market is an element of the analysis of the drug supply system. The purpose of the study is to analyze the dynamics of concentration levels in the wholesale segment of the regional pharmaceutical market. Materials and methods: Data on market shares of key players were collected and summarized based on the executed contracts (461 contracts in total) for the supply of pharmaceutical products in the model region. For the competitive analysis of pharmaceutical distributors, the Herfindahl-Hirschman Index (HHIn) calculation method was used. We also used the method of constructing the SV matrix, which has the form of a graph consisting of four quadrants divided on the abscissa scale by the obtained values of market concentration ratios (CRSV) and on the ordinate scale by the values of Hall-Teidman indices (HTSV). Results: Market concentration indicators in the wholesale segment of the regional pharmaceutical market indicate the formation of oligopoly. The constructed SV matrix demonstrated the dynamics of market concentration levels corresponding to the changing economic situation. Based on the results of the analysis, proposals to improve the competitiveness of regional pharmaceutical distributors were formed. Conclusion: The study of the dynamics of market concentration indicators allowed to analyze their state, establish the vectors of their drift, and propose measures to optimize the wholesale supply of pharmaceutical goods.

The moderating effect of seasonality in the hotel industry. Does market concentration favour tacit collusion?

Market concentration is associated with higher prices. However, previous research has not considered whether the market concentration effect on prices is moderated by seasonality in markets where firms switch from peak demand to low demand periods. This study analyzes market concentration effect on prices and price variability in the hotel industry. Through hedonic price models, the paper analyzes the influence of market concentration on hotel prices and how quality, distance to the city center or seasonality influence hotel prices. A higher market concentration is associated with higher prices. The effect of market concentration on prices is 1.7 times higher in the peak demand season than in the low demand season. Price variability between hotels for a given day in a particular market is partially explained by differences in service quality among hotels in the same city but also by the level of market concentration. We find that higher market concentration reduces price variability, a result consistent with the existence of tacit collusion.

Bank performance and financial stability during the COVID-19 pandemic: lessons from the MENA region

PurposeThis study investigates the role of market concentration and efficiency in banking system stability during the COVID-19 pandemic. We empirically test the hypothesis that market concentration and efficiency are significant determinants of bank performance and stability during the time of crises, using a sample of 575 banks in 20 countries in the Middle East and North Africa (MENA).Design/methodology/approachThe main sources of bank data are the BankScope and BankFocus (Bureau van Dijk) databases, World Bank development indicators, and official websites of banks in MENA countries. This study combined descriptive and analytical approaches. We utilize a panel dataset and adopt panel data econometric techniques such as fixed/random effects and the Generalized Method of Moments (GMM) estimator.FindingsThe results reveal that market concentration negatively affects bank profitability, whereas improved efficiency further enhances bank performance and contributes to the banking sector’s overall stability. Furthermore, our analysis indicates that during the COVID-19 pandemic, bank stability strongly depended on the level of market concentration, but not on bank efficiency. However, more efficient banks are more profitable and stable if the banking institutions are Islamic. Similarly, Islamic banks with the same level of efficiency demonstrated better overall financial performance during the pandemic than their conventional peers did.Research limitations/implicationsThe main limitation is related to the period of COVID-19 pandemic that was covered in this paper (2020–2021). Therefore, further investigation of the COVID-19 effects on bank profitability and risk will require an extended period of the pandemic crisis, including 2022.Practical implicationsThis study provides information that will enable bank managers and policymakers in MENA countries to assess the growing impact of market concentration and efficiency on the banking sector stability. It also helps them in formulating suitable strategies to mitigate the adverse consequences of the COVID-19 pandemic. Our recommendations are useful guides for policymakers and regulators in countries where Islamic and conventional banking systems co-exist and compete, based on different business models and risk management practices.Originality/valueThe authors contribute to the banking stability literature by investigating the role of market concentration and efficiency as the main determinants of bank performance and stability during the COVID-19 pandemic. This study is the first to analyze banking sector stability in the MENA region, using both individual and risk-adjusted aggregated performance measures.

Analysis of Factors That Influence the Quality of Company Financial Reports

This research aims to examine the influence of company scale, ownership composition, and level of market concentration on the quality of financial reports of manufacturing companies listed on the Indonesia Stock Exchange (BEI). The data used comes from the annual financial reports of 120 companies during the 2015-2017 period. The purposive sampling method was used for sample selection. The results of data analysis show that there is a significant correlation between independent variables and the quality of financial reports. The results of the regression test show that company scale, ownership composition, and level of market concentration significantly influence the quality of financial reports. These findings indicate that companies with large size, consolidative ownership structures, and market dominance tend to produce higher quality financial reports. The implications of this research highlight the importance of good information management in a business context, as well as the need for transparency and accountability in corporate financial reporting.

Obavezno osiguranje vlasnika motornih vozila od odgovornosti između slobode ugovaranja i prinudne kartelizacije

The European Union enacted directives on motor vehicle liability insurance to accomplish the goals of free movement of persons and equal protection of third parties against damages caused by using motor vehicles. Serbia has been harmonising its legislation with the EU insurance acquis for several decades. Regarding motor vehicle liability insurance, market liberalisation has been prevented by the Law on Compulsory Insurance in Transport – LCIT 2009. LCIT authorised the Association of Insurers of Serbia to determine minimal premium prices with the consent of the National Bank of Serbia – NBS and stipulated mandatory Bonus-Malus System – BMS. Effectively, the NBS laid down minimal premium prices applicable within the BMS grades and conditions for the application of bonuses and maluses. The author analyses EU legislation and the case law of the Court of Justice related to fixing insurance premiums, mandatory BMS and competition law issues in the motor vehicle liability insurance market. The BMS in several EU member states has been compared with the BMS in Serbia. Competition in the motor vehicle liability insurance market in Serbia has been prevented as a consequence of the fixed premium prices and mandatory BMS. The author has also analysed the negative effects of the current legal framework on the motor vehicle liability insurance market structure, pointing out the static market concentration level and the substantial share of motor vehicle liability insurance premiums in the total insurers’ income. It is essential to amend LCIT without delay to liberalise the Serbian motor vehicle liability insurance market.

Energy imports and manufacturing exports with successive oligopolies and storage

Many industrial countries run a “business model” that is based on oligopolistic export industries which strongly depend on energy imports. This paper uses an analytically tractable general equilibrium model of international trade with successive oligopolies and storage to analyze optimum trade and industrial policies for such countries. There can be over-investment in storage for strategic reasons. Despite double marginalization, there is a non-zero optimum level of market concentration for the domestic industry. The optimum import tariff is most likely positive. Subsidies to storage and reduced use of long term contracts usually raise domestic welfare.

Agricultural products export strategy: Expanding reach through diversification

The study comprehensively examines the diversification of asparagus exports from Peru, concentrating its analysis on the strategic diversification of markets and companies as pivotal for fostering sustainable growth in the agricultural sector. Utilizing a descriptive and non-experimental quantitative methodology, the research analyzed export data spanning from 2018 to 2023. This analysis was performed using the Herfindahl-Hirschman index (HHI) (Arbulú Ballesteros et al., 2024), a tool designed to measure market concentration levels (Montes Ninaquispe, Pantaleón Santa María, Arbulú Ballesteros, et al., 2023). The findings reveal a significant ongoing dependence on the American market, highlighting it as the primary export destination. However, there is a noticeable trend towards greater diversification among export destinations and the companies involved in these processes. The study notes a progressive decline in market concentration, which suggests a shift towards a more competitive and diversified export environment. Conclusions drawn from the research underscore the critical need to develop strategies that not only diversify markets but also enhance overall competitiveness within the sector. Recommendations from the study stress the importance of tapping into emerging markets, creating value-added products, adopting advanced technologies, and supporting the inception of new businesses. Additionally, it advocates for the promotion of business development across various regions to mitigate risks and encourage more balanced and sustainable economic growth.

Research of the Competition Level for Manufacturers and Distributors of the Pharmaceutical Market in Ukraine

The article analyzes the development of the pharmaceutical market of Ukraine, proves the prospects of this industry in terms of the impact on the national economy and indicators of dynamics in the period from 2018 to 2021. During this period, the influence of global processes on the dynamics of the production indicators and sale of goods in the pharmaceutical market, the impact of the COVID pandemic is assessed and its consequences, as well as the beginning of a full-scale war of the RF against Ukraine.
 A retrospective study about the development of the main players of the pharmaceutical market in Ukraine at all levels of the medical products-representatives movement: from production to distribution of products by distributors, taking into account the national and foreign affiliation of a specific counterparty. The level of market monopolization was evaluated according to the Lind and Herfindahl-Hirschman indices, which are the most common methods among scientists for identifying the level of market concentration. It is illustrated that newly created and small enterprises of the pharmaceutical market, which constitute a competitive environment in the industry, deserve special attention. According to the results of the analysis, enterprises with an extremely high level of market concentration for manufacturers and distributors were also identified: “Farmak” and “Darnytsia” and “Optima-Pharm LTD” and “BaDM”, respectively.
 Among the manufacturers, a comparative analysis of structures in dynamics using the coefficient of structural shifts was additionally applied - to generalize the intensity of changes for 2021 and 2022. In the structure of distributors, particular attention is also paid to the enterprise «Venta LTD», which closes the top three enterprises in the farm industry, but has a risk of nationalization due to the share of Russian capital in the total assets of the enterprise, which gives time to other suppliers to occupy places on the trade niches, forming an oligopoly on market. As a result, specific decisions regarding state regularization as a way to solve the problem of pharmaceutical market monopolization by some of its representatives, related to the main principles of ensuring a competitive environment: transparency, control, support and protection of enterprises, are given to the conducted analysis. The specified information constitutes a promising direction of research – cooperative relations between manufacturers and distributors for the establishment of a logistics chain in today’s conditions.

Nature of the monopoly of information and communication platforms

Methods. The theoretical and methodological basis of the study is the theory of sectoral markets as a separate branch of microeconomic theory that explains the principles of functioning of market structures. Starting from the neoclassical concept of monopoly and supplementing it with institutional, behavioral and other parameters, the author conducts a comparative analysis of economic and natural monopoly with a new phenomenon in market organization – the monopoly of information and communication platforms, and on this basis determines the its nature. Results. The article theoretically substantiates the sources of monopoly of information and communication platforms, including the high level of market concentration, low elasticity of demand, and barriers to entry that are typical for traditional economic monopolies, and the economies of scale, subadditivity of costs and control over the key resource in the industry that are inherent in natural monopolies, as well as network effects, transaction cost savings and control over large databases that are unique to the monopoly of information and communication platforms. The author describes the typical behavioral strategies that follow from them: the formation of «bottlenecks» in the channels of goods movement and the exploitation of the lock-in effect, vertical integration and leverage of market power, personalization, exclusive dealership, etc. The specifics of their implementation for transactional and non-transactional platforms are determined. The role of the key resource operator in the digital ecosystem is determined. Novelty of the study presented in the article lies in the systematization of the sources of market power that determine the formation of the monopoly of information and communication platforms, and in the identification of unique ones among them and those which are typical for other types of monopoly. The author substantiates the role of network effects, transaction costs and big data control in consolidating the monopoly position of information and communication platforms in the «bottlenecks» of the commodity circulation chains. Practical value. The results of the study form the theoretical basis for the state regulation of the monopoly of information and communication platforms.

Motor Vehicle Registration Taxes (MVRT) across EU countries: MNEs’ profitability and the role of market concentration

This paper discusses the effects of one-off Motor Vehicle Registration Taxes (MVRT) and market concentration level on the profitability of multinational enterprises (MNEs) operating in the European Union motor vehicle industry. Our simple theoretical framework shows that firm profits depend on the demand function and therefore on taxes applied to prices. We overcome empirically the challenges of making informative theoretical predictions on the pass-through rate under imperfect competition. We find that MVRT,—both as ad valorem taxes and as specific taxes,—have a significant negative effect on MNEs’ profitability. Our findings show a statistically significant positive effect of market concentration on profitability. Finally, our results suggest that the degree of competitiveness in the motor vehicle market moderates the effect of MVRT on firm profitability only in EU countries where the MVRT is an ad valorem tax, with the negative effect of the ad valorem MVRT becoming higher as the motor vehicle market becomes less competitive.

Structure and Performance of Cowpea Marketing in Biu Local Government Area of Borno State, Nigeria

This study analyzed the structure and performance of cowpea marketing in Biu Local Government Area, Borno State. The specific objectives were to: describe the socioeconomic characteristics of cowpea marketers; determine the structure of cowpea marketing; analyze the performance of the marketing and identify problems associated with marketing of cowpea. Five cowpea markets were selected for the study namely: Biu, Miringha, Mandaragrau, Mandafuma and Buratai. Twenty respondents were randomly selected from each of the 5 markets giving a total of 100 respondents. Primary data and secondary information were used for the study and the data were analyzed using descriptive statistics, Gini Coefficient and marketing margin. The findings of the study indicated that majority (62%) of the respondents were males, in the active age group of 31-50 years. The educational level of the respondents showed that 85% had various form of education and 96% were married. The Gini Coefficient for cowpea market participants showed an unequal distribution in the income generated with Gini Coefficient of 0.39009. The cowpea marketing margins were 27.3%, 30.8% and 28.4% for retailers, wholesalers and the marketers that does both wholesale and retail respectively. Major problems associated with cowpea marketing in the study area are insecurity (94%), inadequate storage facilities (93%), insect pest infestation (91%) and high cost of transportation (78%). The study concluded that there is a relatively low concentration in cowpea market in the study area. The high level of market concentration is an indication of presence of perfectly competitive structure in the cowpea market. The study recommended that government and non-governmental agencies should empower the marketers through the provision of micro credit facilities to encourage more people to go into cowpea marketing.

Structure and Performance of Cowpea Marketing in Biu Local Government Area of Borno State, Nigeria

This study analyzed the structure and performance of cowpea marketing in Biu Local Government Area, Borno State. The specific objectives were to: describe the socioeconomic characteristics of cowpea marketers; determine the structure of cowpea marketing; analyze the performance of the marketing and identify problems associated with marketing of cowpea. Five cowpea markets were selected for the study namely: Biu, Miringha, Mandaragrau, Mandafuma and Buratai. Twenty respondents were randomly selected from each of the 5 markets giving a total of 100 respondents. Primary data and secondary information were used for the study and the data were analyzed using descriptive statistics, Gini Coefficient and marketing margin. The findings of the study indicated that majority (62%) of the respondents were males, in the active age group of 31-50 years. The educational level of the respondents showed that 85% had various form of education and 96% were married. The Gini Coefficient for cowpea market participants showed an unequal distribution in the income generated with Gini Coefficient of 0.39009. The cowpea marketing margins were 27.3%, 30.8% and 28.4% for retailers, wholesalers and the marketers that does both wholesale and retail respectively. Major problems associated with cowpea marketing in the study area are insecurity (94%), inadequate storage facilities (93%), insect pest infestation (91%) and high cost of transportation (78%). The study concluded that there is a relatively low concentration in cowpea market in the study area. The high level of market concentration is an indication of presence of perfectly competitive structure in the cowpea market. The study recommended that government and non-governmental agencies should empower the marketers through the provision of micro credit facilities to encourage more people to go into cowpea marketing.

Banking system stability in the MENA region: the impact of market power and capital requirements on banks’ risk-taking behavior

PurposeThis paper aims to investigate the impact of capital requirements and bank competition on banks' risk-taking behavior in the Middle East and North Africa (MENA) region.Design/methodology/approachThe study combines both descriptive and analytical approaches. It considers panel data sets and adopts panel data econometric techniques like fixed effects/random effects and generalized method of moments estimator.FindingsRegulatory capital and market competition have different effects according to the bank’s type (Islamic or conventional). The results show that the capital adequacy ratio has a significant impact on the credit risk of conventional banks (CBs) while this effect is irrelevant for Islamic banks (IBs). However, market competition plays a significant role in shaping risk-taking behavior of Islamic banking institutions. Our results indicate that banks with strong market power may pursue risky strategies in the face of increased regulatory pressure (e.g. increased minimum capital requirements). The results were robust to alternative profitability measures and endogeneity checks.Research limitations/implicationsThe most important limitation is the lack of data for some banks and years, and this paper had to exclude some variables because of missing observations. The second limitation concerns the number of IBs in the sample. However, this can be overcome by including more countries from MENA and other regions where Islamic banking is a growing phenomenon.Practical implicationsOur findings call for a change in Islamic banking’s traditional business model based on the prohibition of interest. The analysis indicates that market concentration moderates the association between capital requirements and the insolvency risk of IBs but not CBs. Therefore, regulatory authorities concerned with improving financial stability in the MENA region should set up their policies differently depending on the level of banking market concentration. Finally, bank managers are requested to apply a more disciplined approach to their lending decisions and build sufficient capital conservation buffers to limit the impact of downside risk from the depletion of capital buffers during the pandemic.Originality/valueThis study addresses banks’ risk-taking behavior and stability in the MENA region, which includes banks of different types (Islamic and conventional). This paper also contributes to the literature on bank stability by identifying the most critical factors that affect bank risk and stability in the MENA region, which can be relevant in the context of the new global (COVID-19) crisis.

Efficiency, market concentration and bank performance during the COVID-19 outbreak: Evidence from the MENA region.

This study aims to contribute to the existing literature that explores the impact of market concentration on bank efficiency in emerging economies. Using a sample of 225 banks in 18 countries in the Middle East and North Africa (MENA) region over the period 2006-2020, we empirically investigate the significance of this relationship. Since the evidence of concentration effect on efficiency during the COVID-19 outbreak is ambiguous, we test the hypothesis that the efficiency is positively affected by the level of banking market concentration in the MENA region. We adopt fixed effect model specifications and test the robustness of our results with the two-step Generalized Method of Moments (GMM) estimation technique. Our analysis finds a strong positive association between market concentration and bank efficiency. The analysis of different types of banking systems that co-existing in the MENA region (Islamic and conventional) indicates the market concentration effect is more pronounced when the banking institution is Islamic and during the COVID-19 outbreak. Moreover, the better economic performance of Islamic banks during the initial stage of pandemic further increases their efficiency. Our analysis indicated that the impact of market competitive conditions on bank efficiency varies significantly across banks with different ownership structures and is more pronounced for government-owned banks. The results are robust using different model specifications and alternative estimation techniques.

Market Concentration in Construction Tenders in West Papua

This study aims to determine the level of market concentration in construction work tenders in West Papua and to investigate the correlation between the market concentration index and the average participation in tenders, the number of work packages, and average tender savings. West Papua has privileges in procurement and has special autonomy funds for development. The study uses tender data from 2018-2022 and employs the Herfindahl-Hirschman Index (HHI) and Concentration Ratio 4 (CR4) to calculate market concentration. The results indicate that, based on HHI, the market concentration in the building construction and civil engineering subsectors is generally low, except for civil engineering in 2022. However, based on CR4, the market concentration in the building construction subsector is moderate, and in the civil engineering subsector, it is low, except for 2018. Moreover, there is a negative correlation between the number of packages and average participants, as well as between the number of packages and CR4 values. The findings of this study can be useful for construction providers to understand the competition in tenders and assist the government in developing competitive procurement strategies. Future research can investigate the economic benefits of local West Papua businesses when market concentration is low.

Конкуренция производителей на российском рынке здоровых напитков в 2012–2021 гг.

The growing interest in a healthy lifestyle among Russian consumers leads to an increase in demand for healthy food products and beverages, which is reflected in the rather high growth rates of this market and its increased attractiveness for manufacturing companies. In this article, the purpose of the study is to assess the dynamics of the level of competition in the segments of the Russian market of healthy drinks (“Better for You”, “Fortified/Functional”, “Naturally healthy” and “Organic”) and throughout the market as a whole from 2012 to 2021. To achieve the goal, the following tasks are set: 1) to identify the dominant group of players, the degree of differentiation within the group itself; 2) to determine the level of market concentration; 3) to analyze the dynamics of the level of competition from 2012 to 2021. To determine the degree of concentration of market segments, the Herfindahl – Hirschman index (HHI) is used, to identify a group of dominant players and its size – the Lind index (IL) and the concentration coefficient (CRSV), to determine the degree of differentiation between the leading players – a modified version of the Hall – Tideman index (HTSV), to analyze the dynamics of the level of competition, – matrix SV (Strength/Variety). The conducted research shows that for 2012–2021 in all segments of the healthy drinks market, one or another trend of leaving the RO quadrant occurs either by increasing the total market share of leaders, or by increasing the level of differentiation between players. In each of the market segments, there is a tightening of monopolization, in the market as a whole – a complete departure from free competition to natural oligopolization. The composition of the dominant groups in large market segments strongly intersects and includes major international players, although there is a noticeable decrease in their share in the market under consideration.

Assessment of business competitive advantage in the government procurement market

The article presents an analysis of the company's competitiveness engaged in road construction works in the federal highways construction segment, including a company's market analysis with its dynamics and limitations, as well as a study of the market concentration level using the market concentration coefficient and the market concentration index, the competitor companies characteristics, used methods for assessing the competitiveness level (complex and differential methods) and the assessment results. The object of the study is the company stock corporation "Road-building company "AVTOBAN", which has been operating in the road construction market for more than 20 years in the federal highways construction segment and occupies one of the leading places in terms of performed labor volume. The study's purpose is to analyze the competitiveness of a company operating in the government procurement market in the road construction field, including market dynamics and characteristics, its limitations, and the concentration level. The authors have identified specific features and factors of the road construction market in Russia (the construction segment of federal highways) under the conditions of the government procurement system; based on the analysis results of the company competitiveness under study, conclusions were formulated on the current level of its competitiveness and the direction of its development. Research objectives: • to conduct a general analysis of the road construction market in Russia (segment of the construction of the federal highway); • identify specific features and factors of this market in the context of government procurement; • analyze the company competitiveness under study in this market using a comprehensive and differential assessment method and formulate the main conclusions on the current level of competitiveness and the direction of its development. The paper raises research questions such as: • what are the features of the road construction market in Russia (segment of the construction of federal roads), functioning in the government procurement system; • what are the specific features and factors of the road construction market in Russia (segment of the construction of federal highways) that affect the level of competitiveness of business conducted in the government procurement system.

НОВЕЙШИЕ ГЕОГРАФИЧЕСКИЕ ИЗМЕНЕНИЯ КОРПОРАТИВНОЙ СТРУКТУРЫ МИРОВОЙ ДОБЫЧИ НЕФТИ И ГАЗА

This article is devoted to the latest changes in the corporate structure of global oil and gas production over the period from 2001 to 2021. The study aims to identify current trends in the development of oil and gas companies and compare them in the hydrocarbons production segment. The author has collected a database of the largest companies in the industry, including data on their production indicators for the base and study years and also qualitative characteristics – the form of ownership, scope of activity, and geographical coverage. Based on the collected data, the study revealed changes in the corporate structure of global hydrocarbons production, noted despite the relative stability in the level of market concentration. The dynamics of production indicators were studied both in the context of the companies themselves and their home countries. The aspect of the transnationalization of global oil and gas production in 2021 was explored. As the study showed, the top 10 firms account for about 80% of hydrocarbons produced outside of the companies’ home countries. The example of one of the largest oil and gas MNEs in the world – ExxonMobil – shows the change in the location of producing assets and the role of individual countries in the global hydrocarbons production by the company.

BUSINESS INTELLIGENCE: STATIC AND DYNAMIC ASPECTS OF THE WORLD MARKET

Objective. Determination of the state and features of the development of Business Intelligence as a type of decision support system in the world. Methods. The following methods and techniques of cognition were used in the research process: theoretical generalization and comparison, analysis and synthesis, induction and deduction, generalization and systematization. Results. It was established that business intelligence (BI) is a type of decision support system (DSS), which is a large-scale, interactive information system designed to ensure the collection, processing (in particular, analysis and visualization), storage and use of information for decision-making, the demand for which, in view of the significant and exponentially growing amount of information that must be taken into account by the management of the enterprise when making management decisions, the imperatives of transparency and the validity of management decisions, is constantly growing. It was determined that BI began to be actively discussed in scientific and business circles since the 80s of the 20th century. It was established that at the current stage of development, the global BI market is dynamically developing and is characterized by the following features: 1) significant and growing market capacity; 2) complex market architecture; 3) asymmetry and disproportionality of development; 4) significant structural features of the offer and a high level of market concentration; 5) significant structural features of demand. It was determined that as of 2022, the world market of BI is estimated at 29.42 billion dollars, in 2030 - 54.27 billion dollars.It is substantiated that the BI market is quite segmented, it includes the following segments: market of BI software, market of BI platforms and services; the local BI market (On-Premise BI) and the cloud BI market (Cloud BI); BFSI for Banking, Financial Services and Insurance (BFSI), IT BFS, Retail BFS, Healthcare BFS, etc.; the North American BI market, the European BI market, the Asia-Pacific region BI market, etc., the BI market of individual countries. Based on information about the state and features of the development of the segments of the BI market, it was established that the largest and most developed segments of the BI market are: the BI software market, the cloud BI market, the BI market for IT, the North American market; the fastest growing segments of the BI market are: BI platforms, applications and services market, cloud BI market, mobile BI market, Asia Pacific BI market, BI market for BFSI. It has been proven that despite the fact that the IT market is characterized by a fairly developed subject structure, the leading companies of the IT market are: IBM (USA), Oracle (USA), Microsoft (USA), AWS (USA), Salesforce (USA), Sisense (USA), MicroStrategy (USA), Teradata (USA), etc., this market is characterized by a high level of concentration, because Microsoft's share is 36% of the IT software market, 71% of cloud IT. It has been established that BI is most actively implemented by large companies.